Health Insurance Articles
New Health Insurance Laws Designed To Lower Rates
2011-08-03
With the Affordable Care Act come several new health insurance laws. These laws are meant to protect consumers as well as improve the quality of healthcare. The new healthcare act has been met with acclaim as well as high political scrutiny. A major area of concern is insurance rates. While some report lower rates, many see no change, or even increased prices. However, many new laws that kick in later this year aim to change that.
In September 2011, most of the U.S. states will be granted funds in an effort to improve insurance rates through a better review process. Only five states did not apply for this funding; they are Montana, Minnesota, Georgia, Alaska and Iowa. These states opted out in favor of allowing a federal review instead.
The new health insurance laws are an attempt to put an end to sky-high insurance hikes and lower the current rates. The funding for a solid review system aims to force accountability and cooperation. The review process calls on the states to heavily scrutinize any rate increases of 10 percent or more. Currently, a little more than half of the states have the legal authority to intervene with such hikes; however, nearly half of those half fail to use this authority effectively.
Another plan of action to better control growing insurance rates is through spotlighted attention to the matter. This basically means that insurance companies that are caught with unexplainable inflated prices are slated for public exposure. New health insurance laws passed with the Affordable Care Act include the use of a federal website that posts unacceptable insurance premium price increases. These posts will be insurance provider specific, unveiling all the dirty details.
The use of the federal website is intended to spotlight bad pricing practices, leaving the providers to explain themselves and the rates. This national attention is meant to keep pricing at bay, with serious business-affecting consequences to the providers. While risking reputation certainly works as an incentive to behave better, this law is being met with some opposition as well. Even in an effort to lower insurance rates for Americans, some are left wondering if federally regulated public humiliation is an ethical tactic.
The Affordable Care Act has implemented several new health insurance laws. From designating 85 percent of premiums to be applied to care to increasing information for proper rate comparisons, the effort remains to lower insurance rates and heighten the quality of care. Still, this great debate between political parties rages on, and for everyone who says 'yea', someone else seems to say 'nay'. However, regardless of politics, the truth remains that in order to change the destination, one must first change directions.
